Homestead Exemptions

A Homestead Exemption is a legal provision that offers two primary benefits to homeowners on their principal residence: a reduction in property taxes and protection of home equity from certain creditors. A homestead exemption lowers taxable value & caps increase at 10% per year.

Tarrant County: Average effective tax rate: ~1.82%.

Dallas County: Average effective tax rate: ~1.73%.

You qualify for a homestead exemption if all three of these criteria are met:

-Your home is your primary residence as of January 1st of the tax year.

-Your home is owned by an individual (not a corporation of business entity) or you have a qualifying interest in it.

-You have not claimed a homestead exemption on any other property.

Note:  In Tarrant County, the exemption can apply to a house, mobile home, or up to 20 acres of land used for residential purposes.

1. Change your address on your driver’s license or state ID (Your Texas driver’s license or state ID MUST list the same address as the property you’re claiming an exemption on. Make sure to update it as soon as you move!)

2. Appraisal: The Dallas Central Appraisal District (DCAD) or The Tarrant Appraisal District (TAD) sets your property value every year based on sales, size, and improvements. That value is the starting point for your tax bill. You can (and should!) protest if you feel the value is too high.

Note: In Tarrant County, many homes are now appraised every two years instead of yearly.

3. File for Homestead Exemption as soon as you qualify — it’s free and saves thousands. (see the link above!)

4. Protest if your value looks high.

5. Pay your bill by January 31.

6. Re-confirm exemptions if your appraisal district asks.

OTHER TIPS: 

-Mark April 15th and May 30th on your calendar

-Watch for mail from DCAD or TAD — don’t toss it unopened.

-Keep copies of exemption approvals and protest results in your records.

Lorem ipsum 

Key Deadlines: 

• April 30 – Last day to apply for homestead and other exemptions.
• May 15 (or 30 days after your notice) – Last day to protest your value.
• October – Tax bills are mailed.
• January 31 – Payment due to avoid penalties.

• The regular deadline is April 30 of the year for which you want the exemption to apply.
• If you miss April 30, you may file a late application. Often, the cutoff is up to one year after taxes become delinquent (or the delinquency date) or similar constraints.
• You can also “go back” up to two years on a late application for residence homestead in many cases. 
• New law (2023) in both counties requires re-verification: the appraisal district must verify your eligibility at least once every five years. If you don’t respond, you could lose the exemption.

Your Texas driver’s license or state ID MUST list the same address as the property you’re claiming an exemption on. Make sure to update it as soon as you move!